Analysis of Apple Inc. Performance

Analysis of Apple Inc Performance


Apple Inc. has been in operation since 1976 and was founded by Steve Jobs, Steve Wozniak, and Ronal Wayne. The company’s headquarter is located in California, Silicon Valley in the United States of America and with over 478 retail stores. Apple Inc. mainly develops designs and sells customer electronic gadgets, computer software and online technological services. Currently, Apple Inc. Produce and supply Mac, IPhone, IPod, electric vehicles, iPad, Apple Watch, Apple TV, software and apple energy. As at December 2014, Apple was valued as the largest public corporation with over $700 billion in assets and market capitalization. The company also registered a total of $233 billion in revenue as at September 2015, and the brand is currently valued at $170 billion. The company employs 115,000 workers in total over 478 retail stores worldwide (Apple Inc., 2016).

Apple Inc the Mission and Vision Statement

Apple Inc.’s goal as captured in the mission and vision statement is to design and produce the best, Macs, PCs, OS X, iLife, iWork and other professional software. Apple Inc. seeks to revolutionize the music industry using its iPod, iTunes, and online stores and reinvent its mobile phones such as iPhone and application store, thus defining the future of mobile media and computing (Apple Inc., 2016).

Apple Inc Strategies

Akan, Allen, Helms & Spralls (2006) define strategy as a set of plans, activities, and procedures to be undertaken to achieve a particular goal or purpose. Apple Inc. has adopted two primary strategies known as the generic and intensive growth strategy. These two strategies have ensured the success of the company against its competitors such as LG, Samsung, and others even at high price levels. Apple’s key generic strategy is product differentiation which ensures that Apple products stand out in the market against its competitors. Apple’s qualifier development plan of action includes product development and innovation, market development and penetration (Kosner, 2015).

[blur] Apple operates both in the domestic and international market. Apple’s intensive growth strategies ensure that the company develops products, thus meets market needs that enabling market penetration and even development. For example, iTunes and iPods are mostly used by teenagers while corporate organizations may demand software. Apple’s market is thus diverse, and extensive ensuring member of the society (businesses, adults, children, and teenagers) is captured through its market development strategies. With the high rate of innovation and product design & development, the company remains highly competitive in technology even at high prices (Keiser, 2014). [/blur]

[blur] Another aspect that is critical to the success of a company like Apple Inc. is compliance with regulatory requirements. According to Beasley (2016) Apple currently faces several litigation charges against its patents; the company is also under investigation over its anti-competitive strategies in the e-book market and poor factory conditions. The most recent regulatory risk posing a threat to the company’s success is the Europe tax penalty requiring the company to pay billions of shillings over claims that Apple received illegal state aid from Ireland, judging it as tax avoidance.  [/blur]

[blur] Apple Inc. operating characteristics include the development of Mac OS operating system that combines the previous Apple’s software technology with UNIX features. This form of product differentiation has given Apple a competitive edge in the market since most of its competitor use Microsoft Windows or Android operating systems (Keiser, 2014). [/blur]

[blur] According to the Apple Inc. (2016) financial and annual reports the company registered a 28% increase in revenue in 2015 with $233 billion reported in 2015 as compared to $182 billion in 2014 and $170 billion in 2013. Apple indicated that the service and Facebook revenue stood at 9% and 7% of the total revenue respectively. These percentages were reported to be the highest in the market (Apple Inc., 2016). The company estimates that the service revenue will more than double by 2020 to $53 billion and provides a total income growth projection of 40% (Apple Inc., 2016). [/blur]

[blur] In conclusion, Apple growth is foreseen because of its generic and intensive strategies that will see the company rise above its competitors. However, the technology industry is quite dynamic, and a company may not stay long at the top unless product development and innovation becomes a daily routine. [/blur]

Analysis of Apple Inc. Performance

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